Regarding further developments, I request that you inform me in writing through the Administrative Office of the Council of People's Commissars, comrade Gorbunov. In case of any obstacles, inform me immediately through him.

Chairman of the Council of People's Commissars and Council of Labor and Defense V. Ulyanov (Lenin)

Written October 16, 1922

First published January 20, 1930 in the newspaper *Izvestia TsIK and VTsIK* No. 20

Printed from a typescript copy signed by V. I. Lenin

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LETTER TO THE POLITBURO OF THE CC RCP(b) CONCERNING THE AGREEMENT WITH A CONSORTIUM OF GERMAN FIRMS

To comrade STALIN for the POLITBURO, copy to comrade KAMENEV.

I have carefully read the agreement with Otto Wolff. I find that comrade Kamenev's objections are entirely based on a misunderstanding, and I believe the question must be submitted to the Politburo for decision tomorrow itself, since the disagreement between myself and Kamenev requires an authoritative and final resolution.

Kamenev writes in his note that we are "obliged to purchase his goods from Wolff." This is a complete misunderstanding. Reading the agreement, I found in a whole series of articles that we have the right to verify the list of goods that Wolff provides us. We undertake not the slightest obligation to purchase Wolff's goods. If Wolff is unable to compile a list of goods that we are willing to purchase, then the agreement extends only to that part of Wolff's goods which we have agreed to purchase. I have clarified this matter in detail both with Lezhava and with Frumkin today, and both confirm that we in no way whatsoever bear the slightest obligation to purchase Wolff's goods.

Comrade Kamenev's similar misunderstanding explains why he claims that Lezhava, as he puts it, "deepened" his doubts. In fact, the proposal by Stomonvakov, which is formulated on page 2 of protocol No. 62 and which was unanimously accepted by all our economic managers, is explained quite differently. This proposal consists in Wolff developing, in the interests of our reviving industry,

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the delivery to us of machinery and other necessary equipment—for example, for the Electrical Trust. Wolff can agree to this, because such an order will also give him income, and in general German metal industry needs orders. Machinery and equipment are for us—for example, for the Electrical Trust—absolutely necessary, because this industry is beginning to revive in our country, and it is of the utmost importance to us that we develop this industry in ourselves, strengthening it definitively with German means of production.

Consequently, the amendment introduced by Lezhava flows from the correctly understood economic interests of Russia, which now needs protectionism, especially for the entire light industry, because then we will be able more easily to restore this industry and thereby secure the interests of our proletariat. Lezhava's amendment has nothing whatever in common with any sort of free trade, or even with opening borders, though while maintaining customs tariffs. Comrade Kamenev writes at the end of his note:

"Conclusion: in exchange for delaying our payments to Wolff for a year for goods unknown to us, we are giving him now the monopoly right to purchase and export raw materials. Cheap."

This is a complete and utter misunderstanding. It is impossible to imagine a more advantageous agreement than the one we are concluding with Wolff. We pay him 10% annually, whereas even England now pays 7%, and the German government pays 12%. That is one thing. That we purchase from him goods that are not at all unknown, but only reviewed by us according to a list and approved for import—that is two. The third circumstance consists in the fact that the monopoly right to purchase and export we give him for such a division of profits as can have nothing whatever in common with any customs tariffs. Namely: first, we receive 10% dividend; second, we receive 10% profit just as Wolff does; and third, if the profit exceeds 40%, then we receive 75% of the remainder, whereas the consortium receives only 25%.

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